Gross Revenue Retention (GRR)
The percentage of recurring revenue retained from existing customers over a period, excluding expansion revenue. GRR can never exceed 100%.
What is Gross Revenue Retention?
Gross Revenue Retention (GRR) measures how much recurring revenue you keep from existing customers, accounting only for contraction and churn — not expansion. Unlike NRR, GRR can never exceed 100%.
Formula
GRR = (Starting MRR - Contraction - Churn) ÷ Starting MRR × 100
GRR vs. NRR
| Metric | Includes expansion? | Max value | Shows |
|---|---|---|---|
| GRR | No | 100% | Retention floor |
| NRR | Yes | Unlimited | Total growth from existing |
Benchmarks
| Segment | Median GRR | Top quartile |
|---|---|---|
| Enterprise | 90-95% | 95%+ |
| Mid-market | 85-90% | 92%+ |
| SMB | 75-85% | 88%+ |
Why GRR Matters
GRR reveals your true retention foundation. A company with 120% NRR but 75% GRR is masking significant churn with expansion — an unsustainable pattern.
Improving GRR
- Reduce churn — Proactively address at-risk accounts
- Minimize downgrades — Demonstrate value to prevent contraction
- Right-size deals — Avoid overselling that leads to later downgrades
- Value delivery — Ensure customers achieve outcomes that justify their spend
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